Veeco (VECO-7.7%) and Aixtron (AIXG-5.6%) get hammered after Digitimes reports the companies slashed prices for single-wafer MOCVD LED manufacturing systems to ~$1.4M from ~$2M, and 30%-40% for multi-wafer systems, due to Chinese competition. The companies have already been struggling with weak equipment demand on account of overcapacity: Digitimes Research estimates MOCVD shipments will fall 46% this year to 148; Veeco is seen shipping 89 of them, and Aixtron 53. Cree (CREE-3.7%) and GT Advanced (GTAT-4.2%) are also selling off.

It's somewhat odd that GTAT is down along with VECO. GTAT sapphire sales are not dependent on sales of VECO's MOCVD units and in fact GTAT is developing a superior system with Soitec. Using a blend of sapphire and gallium nitride, their Hydride Vapor Phase Epitaxy (HPVE) system will compete with MOCVD by July 2014.